The Premier Investments Limited (ASX: PMV) share price is pushing higher on Monday.
In early trade, the retail conglomerate's shares are up 2% to $25.90.
This follows the release of the company's half-year results this morning.
Premier Investments share price higher on record result
- Retail sales up 17.6% to a record of $905.2 million
- Online sales down 12.5% to $170.9 million
- Retail earnings before interest and tax (excluding one-offs) up 12.2% to $220.4 million
- Net profit after tax up 6.5% to a record of $174.3 million
- Record fully franked interim dividend of 54 cents per share
- Special fully franked 16 cents per share dividend
What happened during the first half?
For the six months ended 28 January, Premier Investments reported a 17.6% increase in retail sales to a record of $905.2 million.
Key drivers of this growth were its Peter Alexander and Smiggle brands. The former delivered a 15.1% increase in sales to a record of $261.7 million, whereas the latter reported a 30.3% lift in sales to $190.7 million.
This was supported by its Apparel Brands, which collectively delivered record sales of $452.8 million, which was up 14.3% on the prior corresponding period despite operating less stores.
On the bottom line, Premier Investments reported a more modest 6.5% lift in net profit after tax to $174.3 million. This reflects weaker gross margins due to currency headwinds.
Nevertheless, those currency headwinds couldn't stop the Premier Investments board from increasing its fully franked interim dividend by 17.4% to a record 54 cents per share. Nor could it stop the company from rewarding its shareholders with a fully franked special dividend of 16 cents per share.
Though, you'll have to be patient for these dividends. They will be payable together on 26 July, with a record date of 21 June.
Management commentary
Premier's Chairman, Solomon Lew, was pleased with the half. He said:
Our teams have executed strongly to support the delivery of record results in an uncertain economic environment. Pleasingly, Premier's statutory NPAT of $174.3 million is up 75.0% on prepandemic 1H20. We are delighted to continue our track record of strong returns for our shareholders, approving record interim ordinary and special dividends for the half of 70 cents per share.
Over the past three years and including the 1H23 dividends, Premier shareholders have been rewarded with a total of half a billion dollars in fully franked dividends. Premier Retail EBIT is up 74.8% on 1H20. Today, Premier Retail is uniquely positioned to continue to deliver with our brands identifying key growth paths for the future, whilst leveraging synergies within the Group's global operations.
Outlook
No guidance has been given for the second half or full year.
However, management advised that the second half has started positively. It stated:
2H23 trading has opened strongly with total sales for the first 6 weeks through February and into March up 7.7% on 2H22. Premier Retail's solid start to 2H23 and its clean inventory position has given the Group confidence that it is well positioned to maximise sales through the trading period ahead.
